just starting out -where do i get good rental contracts etc?

[albainstar]

My finace and i are currently looking to expand our investments into real easte
we have about 160k in equity in our principal residence and are going to buy amother ASAP to rent out.
I am wondering if there are cost effective ways to get our equity out without braking our first mortgage which we would inccur about 30k in penalties.
We are self employed for 3.5yrs which also poses an issue.
We have a approval from our currant lender to give us a no income verification mortgage with 10 percent down. we just dont want to break our existing mort to do it

We have savings to finance the second home but would like to be able to utilize the equity as well to get a third

also looking where to find good tenant contracts and how to do a refernce/background check on prospective tenants.

Thanks in advance for any advice given

 

[RebeccaBryan]

I`ll let a more experienced person answer your mortgage question however as for the tenant contracts they are in the critical forms section of this website. That`s the one I use. Also read the pro-active landlording information also found in REIN. That should give you all the answers you need. Also use the search tool at the left of the screen on this site. This particular topic has been discussed before.

Hope that helps.

 

[jarrettvaughan]

I have just recently taken a home equity line of credit (HELOC) on my residence. The back will generally finance up to 80%. The great things about a HELOC, like any line of credit is that it allows you to pay interest on what you are using rather than the total amount that you are approved for. It is very flexible and cheap. In my experience you do typically have to pay legal fees and a home appraisle. This of course can all be done with out breaking your mortgage. I hope this is helpful as this is what i have recently experienced and due to the HELOC, i am currently in the process of purchasing my first and second investment properties.



QUOTE (albainstar @ Nov 22 2007, 12:45 PM) My finace and i are currently looking to expand our investments into real easte
we have about 160k in equity in our principal residence and are going to buy amother ASAP to rent out.
I am wondering if there are cost effective ways to get our equity out without braking our first mortgage which we would inccur about 30k in penalties.
We are self employed for 3.5yrs which also poses an issue.
We have a approval from our currant lender to give us a no income verification mortgage with 10 percent down. we just dont want to break our existing mort to do it

We have savings to finance the second home but would like to be able to utilize the equity as well to get a third

also looking where to find good tenant contracts and how to do a refernce/background check on prospective tenants.

Thanks in advance for any advice given

 

[albainstar]

What bank are you dealing with and are they open to self employed persons?

 

[KenReynolds]

QUOTE (albainstar @ Nov 22 2007, 01:45 PM) My finace and i are currently looking to expand our investments into real easte
we have about 160k in equity in our principal residence and are going to buy amother ASAP to rent out.
I am wondering if there are cost effective ways to get our equity out without braking our first mortgage which we would inccur about 30k in penalties.
We are self employed for 3.5yrs which also poses an issue.
We have a approval from our currant lender to give us a no income verification mortgage with 10 percent down. we just dont want to break our existing mort to do it

We have savings to finance the second home but would like to be able to utilize the equity as well to get a third

also looking where to find good tenant contracts and how to do a refernce/background check on prospective tenants.


Manulife Bank has a HELOC product that allows self employed people to unlock some of their equitiy in their home. I recall that they go up to 65% based on the appraised value, no income verification and they will cover the cost of the appraisal. If you need more info, let me know via email and I can get back to you.

Cheers!

Ken
Thanks in advance for any advice given

 

[mikecunning]

Wow, 30k to payout a mortgage that is huge. Sounds like a HELOC is the way to go...however, get some advice from an expert in the field such as Peter Kinch`s Canadian Mortgage Team...try www.peterkinch.com

Good luck!

Mike

 

[TIMWEMBLEY]

QUOTE (mikecunning @ Nov 22 2007, 11:14 PM) Wow, 30k to payout a mortgage that is huge. Sounds like a HELOC is the way to go...however, get some advice from an expert in the field such as Peter Kinch`s Canadian Mortgage Team...try www.peterkinch.com

Good luck!

Mike


I have recently taken a HELOC out on a rental property and it is very nice to have cash very accessable BUT it has been hurting my credit score where a mortgage does not. I spoke with Dan Heon "The Canadian Mortgage Team" and mention that this will hurt my ability to get more mortgages. Anybody else ran into this ?? Any creative ways to have a healthy LOC without it hurting you score?

 

[Brandon]

Hi, I think the best thing for you to do without incurring a payout penalty would be to get a second mortgage or a HELOC in 2nd position. This would essentially mean that you would keep making your exact same payments to the bank on your first mortgage, and be making interest only on the money you borrow on the HELOC not a bad way to do it.

As for the question of HELOC`s hurting your chances to qualify for more mortgages, I think it would depend if it shows up on your credit bureau or not. I currently have HELOC`s on 4 different properties and make interest only payments, so far to my knowledge none have shown up on my credit bureau.

Bottom line is a heloc and a mortgage are essentially the same thing only one you pay principal down. You still have to disclose to the bank all of your assets and liabilities and payments etc.

Hope that helps

 

[cecen]

QUOTE (albainstar @ Nov 22 2007, 03:45 PM) My finace and i are currently looking to expand our investments into real easte
we have about 160k in equity in our principal residence and are going to buy amother ASAP to rent out.
I am wondering if there are cost effective ways to get our equity out without braking our first mortgage which we would inccur about 30k in penalties.
We are self employed for 3.5yrs which also poses an issue.
We have a approval from our currant lender to give us a no income verification mortgage with 10 percent down. we just dont want to break our existing mort to do it

We have savings to finance the second home but would like to be able to utilize the equity as well to get a third

also looking where to find good tenant contracts and how to do a refernce/background check on prospective tenants.

Thanks in advance for any advice given


Hi,

For rental contracts I used the following and am very happy about it:

http://www.lawdepot.com/contracts/reslease...view.php?loc=CA